FSA: less than one in 10 IFAs to take restricted route

Less than one in 10 IFAs are likely to stop offering independent advice once the retail distribution review (RDR) comes into effect on 31 December, according to the Financial Services Authority (FSA).

According to a survey conducted by the regulator of 1,436 advisers, only 8% of advisers who are currently independent are likely to switch to restricted advice post-RDR. The regulator said it also showed 86% of advisers were qualified to level four or above, with around 10% already having sat the exams and waiting for their results, and that 94% of advisers were expected to attain their qualifications in time for the 31 December deadline.

Post-RDR, 89% of advisers are likely to remain as advisers, 1% will retire as planned, 5% will leave the advice profession as a result of RDR and 2% do not know what they will do, according to the survey.

The advisers who responded span banks, building societies, independent and tied intermediary firms, insurers, wealth managers and employee benefit consultants. The interviews were conducted between 17 August and 3 October and a full report will be published in January 2013.

The research follows recent survey findings by the Personal Finance Society that claimed 63% of advisers planned to remain independent, 14% would be restricted and 9% had not made up their minds.

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